Research Article
Jul 1973
Utility Function Determination for Bidding Models
Publication: Journal of the Construction Division
Volume 99, Issue 1
Abstract
Two basic decision criteria which may be used in bidding models are maximization of expected monetary value and maximization of expected utility value. The utility function is used in the latter type of models so that the contractor's personal goals and risk preferences may be reflected in the suggested markup levels. The utility function is determined by presenting the contractor with a number of hypothetical bidding opportunities within the framework of the von Neuman-Morgenstern utility axiom system. The utility function results obtained in the illustrative example indicate that the contractor tended to be risk averse when considering all markup levels on large size projects and favorable markup levels on small size projects. He tended to gamble when confronted with small or large markup levels on small size projects.
Get full access to this article
View all available purchase options and get full access to this article.
Information & Authors
Information
Published In
Journal of the Construction Division
Volume 99 • Issue 1 • July 1973
Pages: 133 - 153
Copyright
© 1973 American Society of Civil Engineers.
History
Published in print: Jul 1973
Published online: Feb 11, 2021
Permissions
Request permissions for this article.
Authors
Affiliations
Jack H. Willenbrock, AM.ASCE
Asst. Prof., Civ. Engrg. Dept., Pennsylvania State Univ., University Park, PA.
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.
Cited by
View Options
Get Access
Access content
Please select your options to get access
Log in/Register
Log in via your institution (Shibboleth)
ASCE Members:
Please log in to see member pricing
Purchase
Save for later Item saved, go to cart Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.
Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
Get Access
Access content
Please select your options to get access
Log in/Register
Log in via your institution (Shibboleth)
ASCE Members:
Please log in to see member pricing
Purchase
Save for later Item saved, go to cart Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.
Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.